What are Binary Options?
Binary Options, also known as Digital Options or All-or-Nothing Options, have been available to the public-at-large since 2008. Basically, Binary Options have two possible outcomes.
Binary options are a straightforward form of derivatives that differ slightly from vanilla options and convey fixed successfull/unsuccessfull trade and risk to investors. Binary options present a simple question of whether or not the price of the underlying asset will be above or below a strike price at a point in the future.
Binary options are simple methods for hedging risk or speculating on the price of multiple forms of assets with a predetermined risk and potential for profit or loss.
How Binary Options Work
Mot binary options are traded outside of the U.S., and they can be used as speculation for the suite of assets such as stocks, commodities, and currencies. They are very straightforward but contain nuances depending on the broker and in what jurisdiction you are trading.